Tell Mike that the Undertaker sent you this way to look for alchemical reagents in a town named Loincloth, but that he didn't mention anything about sumo wrestlers on the way.

“The Undertaker sent me in this direction to look for reagents. He said I’d find them in a town named Loincloth, but he never said anything about this place.”

“Well, if you want reagents, you can probably find ’em here. I’ve heard of Loincloth, but I don’t really know where it is, sorry. Our resident geomancer might know, though. He’s the mayor, you know. Really cool guy, knows a lot of stuff. I think his office is closed ’til the morning, though.”

Sounds like you have some time to kill. Do you want to stay in the bar to talk to the locals more, or explore the town?

> Ask the barkeep and other people around the bar if they've seen any of your missing party members, and inquire about a place to stay for the night.